Flanagan & Gerard Property Development & Investment has acquired 50% of Musina Mall from Investec Property Fund.
The transaction was done through Flanagan & Gerard’s investment company Changing Tides 91 and it has resulted in the company becoming 50/50 co-owners of Musina Mall. Moolman Group, Musina Mall’s lead developer with Investec Property Fund previously owned a one-third stake which has increased to a 50% holding.
Paul Gerard, MD of Flanagan & Gerard says the are proud to partner with the Moolman Group again and they are thrilled to acquire a 50% stake of the “quality three-year old retail asset from a property investor of the calibre of Investec Property Fund.”
“Musina Mall meets all our investment criteria – it is reporting excellent trading and it is dominant in its trade area where it has little competition. We are pleased to count Musina Mall in our portfolio of quality shopping centres” he says.
Investec Property Fund’s joint CEOs Andrew Wooler and Darryl Mayers commend Flanagan & Gerard Property Investment and Development in their acquisition of Musina Mall:
“While it is difficult to let go of such a quality asset, we believe that the sale is necessary to de-gear our balance sheet as we look to provide further capital funding for the Pan European logistics real estate and UK Fund strategies. Investec Property Fund has shared and exemplary partnership with Moolman Group following an extension of Musina Mall in 2017 and look forward to seeing their collaboration alongside Flanagan & Gerard. We strongly believe in the class of the asset given the heritage rich town of Musina and walk away proud after eight years of holding the mall within our portfolio.”
“The initial acquisition and redevelopment of Musina Mall, formerly The Great North Plaza, has been incredibly positive and rewarding. It has outperformed our expectations since its relaunch and continues to show significant growth, even in the tough times of late. Our relationships with both Investec Property Fund and Flanagan & Gerard have always been collaborative, progressive, and respectful. We are looking forward to the continued journey ahead and further unlocking the potential of this shopping mall” comments Pieter Lombaard, CEO of Moolman Group.
Situated in the heart of the heritage-rich town of Musina in the Vhembe District of Limpopo, Musina Mall is well-placed in South Africa’s northernmost major town. A mere 10 kms from the Beitbridge border post into Zimbabwe, which is the second biggest port of entry into the country and a gateway to other SADC countries, the mall is located on the N1 from which it enjoys direct access.
The mall is also locating within the Musina-Makhado Special Economic Zone which is rich with mineral resources including diamonds. The zone is intended to accelerate economic growth with President Ramaphosa having identified it as being a focus in South Africa’s post-Covid-19 economic recovery.
The redeveloped mall first opened its doors in March 2017, incorporating the site’s original development, The Great North Plaza. With 35 000 square meters of retail space, Musina Mall houses almost all the area’s recognized national retailers and popular brands.
Anchored by Checkers and Shoprite, the mall offers Woolworths, Clicks, Mr Price, Foschini, Ackermans, Truworths and Pep. It is the home to all five major South African banks with Dis-Chem opening in September 2020.
The mall’s retail is differentiated from the shopping available in the Musina CBD, and the two nearest competing shopping centres are a distant 100km and 200kms away respectively.
“Musina Mall is in high demand for shopping and trading opportunities by residents of this prominent business, social and tourist node, for whom it offers unparalleled convenience, and it also attracts many customers from over the Beitbridge border in Zimbabwe and beyond,” concludes Gerard.